Shein targets $1.77 billion Hong Kong IPO at $27 billion valuation

Shein launched its Hong Kong initial public offering on Monday, seeking to raise as much as HK$13.86 billion, or about US$1.77 billion, in what would value the fast-fashion retailer at up to US$27 billion. The company is offering 280 million shares at HK$47.60 to HK$49.50 each, with final pricing due Aug. 31 and trading set to begin Sept. 1. The valuation is far below Shein’s US$98.2 billion private-market peak in 2022 and below the US$30 billion to US$40 billion range it initially sought. The prospectus also shows Shein agreed to pay up to US$3.5 billion in cash and extra shares to some pre-IPO investors whose funding terms are triggered by the lower valuation.